Arteris (AIP) 10-Q 5 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Oct. 29, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-40960
Entity Registrant Name	Arteris, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0117058
Entity Address, Address Line One	900 E. Hamilton Ave.
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Campbell
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95008
City Area Code	408
Local Phone Number	470-7300
Title of 12(b) Security	Common stock, $0.001 par value
Trading Symbol	AIP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,177,393
Entity Central Index Key	0001667011
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 17,829	$ 13,696
Short-term investments (Note 5)	30,840	27,477
Accounts receivable, net of allowance of $93 as of both September 30, 2024 and December 31, 2023	8,715	12,003
Prepaid expenses and other current assets	5,396	5,254
Total current assets	62,780	58,430
Property and equipment, net	4,058	5,745
Long-term investments (Note 5)	5,839	11,802
Equity method investment	6,436	8,500
Operating lease right-of-use assets	4,070	4,289
Intangibles, net	3,245	3,858
Goodwill	4,178	4,178
Other assets	7,109	5,999
TOTAL ASSETS	97,715	102,801
Current liabilities:
Accounts payable	141	183
Accrued expenses and other current liabilities	12,966	11,831
Operating lease liabilities, current	948	781
Deferred revenue, current	38,991	31,537
Vendor financing arrangements, current	1,172	2,070
Total current liabilities	54,218	46,402
Deferred revenue, noncurrent	26,511	25,172
Operating lease liabilities, noncurrent	3,332	3,610
Vendor financing arrangements, noncurrent	669	1,292
Deferred income, noncurrent	7,928	8,810
Other liabilities	2,848	2,412
Total liabilities	95,506	87,698
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, par value of $0.001 - 10,000,000 shares authorized as of both September 30, 2024 and December 31, 2023; no shares issued and outstanding as of both September 30, 2024 and December 31, 2023	0	0
Common stock, par value of $0.001 - 300,000,000 shares authorized as of both September 30, 2024 and December 31, 2023; 40,127,476 and 37,518,583 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	40	37
Additional paid-in capital	130,678	118,193
Accumulated other comprehensive income	172	120
Accumulated deficit	(128,681)	(103,247)
Total stockholders' equity	2,209	15,103
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 97,715	$ 102,801

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Stockholders' equity:
Accounts receivable, allowance		$ 93
Preferred stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	40,127,476	37,518,583
Common stock, outstanding (in shares)	40,127,476	37,518,583

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operation - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue
Total revenue	$ 14,713	$ 13,274	$ 42,235	$ 41,162
Cost of revenue	1,461	1,280	4,387	3,629
Gross profit	13,252	11,994	37,848	37,533
Operating expenses:
Research and development	11,923	10,997	33,475	34,465
Sales and marketing	4,962	5,024	15,431	15,630
General and administrative	4,286	4,426	13,436	13,331
Total operating expenses	21,171	20,447	62,342	63,426
Loss from operations	(7,919)	(8,453)	(24,494)	(25,893)
Interest expense	(55)	(77)	(199)	(136)
Other income (expense), net	775	898	2,576	2,641
Loss before income taxes and loss from equity method investment	(7,199)	(7,632)	(22,117)	(23,388)
Loss from equity method investment, net of tax	580	919	2,064	2,487
Provision for (benefit from) income taxes	(92)	(398)	1,253	453
Net loss	$ (7,687)	$ (8,153)	$ (25,434)	$ (26,328)
Net loss per share attributable to common stockholders
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.20)	$ (0.23)	$ (0.66)	$ (0.75)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.20)	$ (0.23)	$ (0.66)	$ (0.75)
Weighted average shares used in computing per share amounts
Weighted average shares used in computing per share amounts, basic (in shares)	39,295,743	36,010,106	38,496,838	35,291,207
Weighted average shares used in computing per share amounts, basic (in shares)	39,295,743	36,010,106	38,496,838	35,291,207
Licensing, support and maintenance
Revenue
Total revenue	$ 13,507	$ 12,084	$ 38,799	$ 36,926
Variable royalties and other
Revenue
Total revenue	$ 1,206	$ 1,190	$ 3,436	$ 4,236

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,687)	$ (8,153)	$ (25,434)	$ (26,328)
Other comprehensive loss:
Unrealized gains on available-for-sale securities, net of tax	134	12	52	(55)
Comprehensive loss	$ (7,553)	$ (8,141)	$ (25,382)	$ (26,383)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Balance at beginning of period (in shares) at Dec. 31, 2022		34,625,875
Balance at beginning of period at Dec. 31, 2022	$ 37,535	$ 34	$ 103,778	$ 101	$ (66,378)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		779,227
Issuance of common stock upon exercise of stock options	460	$ 1	459
Issuance of common stock for settlement of Restricted Stock Units (RSUs) (in shares)		1,503,925
Issuance of common stock for settlement of Restricted Stock Units (RSUs)	0	$ 2	(2)
Tax withholding on RSUs settlement (in shares)		(82,372)
Tax withholding on RSUs settlement	(564)		(564)
Stock-based compensation expense	10,981		10,981
Unrealized gains on available-for-sale securities, net of tax	(55)			(55)
Net loss	(26,328)				(26,328)
Balance at end of period (in shares) at Sep. 30, 2023		36,826,655
Balance at end of period at Sep. 30, 2023	22,029	$ 37	114,652	46	(92,706)
Balance at beginning of period (in shares) at Jun. 30, 2023		36,033,361
Balance at beginning of period at Jun. 30, 2023	26,920	$ 36	111,403	34	(84,553)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		135,750
Issuance of common stock upon exercise of stock options	43		43
Issuance of common stock for settlement of Restricted Stock Units (RSUs) (in shares)		728,362
Issuance of common stock for settlement of Restricted Stock Units (RSUs)	0	$ 1	(1)
Tax withholding on RSUs settlement (in shares)		(70,818)
Tax withholding on RSUs settlement	(507)		(507)
Stock-based compensation expense	3,714		3,714
Unrealized gains on available-for-sale securities, net of tax	12			12
Net loss	(8,153)				(8,153)
Balance at end of period (in shares) at Sep. 30, 2023		36,826,655
Balance at end of period at Sep. 30, 2023	$ 22,029	$ 37	114,652	46	(92,706)
Balance at beginning of period (in shares) at Dec. 31, 2023	37,518,583	37,518,583
Balance at beginning of period at Dec. 31, 2023	$ 15,103	$ 37	118,193	120	(103,247)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		660,648
Issuance of common stock upon exercise of stock options	703	$ 1	702
Issuance of common stock for settlement of Restricted Stock Units (RSUs) (in shares)		1,948,245
Issuance of common stock for settlement of Restricted Stock Units (RSUs)	0	$ 2	(2)
Stock-based compensation expense	11,785		11,785
Unrealized gains on available-for-sale securities, net of tax	52			52
Net loss	$ (25,434)				(25,434)
Balance at end of period (in shares) at Sep. 30, 2024	40,127,476	40,127,476
Balance at end of period at Sep. 30, 2024	$ 2,209	$ 40	130,678	172	(128,681)
Balance at beginning of period (in shares) at Jun. 30, 2024		39,193,088
Balance at beginning of period at Jun. 30, 2024	5,275	$ 39	126,192	38	(120,994)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		125,978
Issuance of common stock upon exercise of stock options	119		119
Issuance of common stock for settlement of Restricted Stock Units (RSUs) (in shares)		808,410
Issuance of common stock for settlement of Restricted Stock Units (RSUs)	0	$ 1	(1)
Stock-based compensation expense	4,368		4,368
Unrealized gains on available-for-sale securities, net of tax	134			134
Net loss	$ (7,687)				(7,687)
Balance at end of period (in shares) at Sep. 30, 2024	40,127,476	40,127,476
Balance at end of period at Sep. 30, 2024	$ 2,209	$ 40	$ 130,678	$ 172	$ (128,681)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (25,434)	$ (26,328)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,474	2,240
Stock-based compensation	11,807	10,981
Amortization of deferred income	(885)	(882)
Loss from equity method investment	2,064	2,487
Net accretion of discounts on available-for-sale securities	(522)	(698)
Other, net	124	(3)
Changes in operating assets and liabilities:
Accounts receivable, net	3,288	(3,225)
Prepaid expenses and other assets	(1,249)	(495)
Accounts payable	(43)	(237)
Accrued expenses and other liabilities	1,494	1,544
Deferred revenue	8,793	1,866
Net cash provided by (used in) operating activities	1,911	(12,750)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(274)	(1,075)
Purchases of available-for-sale securities	(25,997)	(35,373)
Proceeds from maturities of available-for-sale securities and other	29,169	33,150
Other	0	(25)
Net cash provided by (used in) investing activities	2,898	(3,323)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of contingent consideration for business combination	0	(1,269)
Principal payments under vendor financing arrangements	(1,438)	(1,041)
Proceeds from exercise of stock options	703	460
Payments to tax authorities for shares withheld from employees	0	(564)
Other	59	79
Net cash used in financing activities	(676)	(2,335)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	4,133	(18,408)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period	14,084	37,423
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	18,217	19,015
Cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents	17,829	18,627
Restricted cash, noncurrent	388	388
Noncash activities:
Purchase of property and equipment through vendor financing	0	2,592
Operating lease right-of-use assets, exchanged for lease obligations	$ 464	$ 480

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Arteris, Inc. was incorporated in Delaware on April 12, 2004. Arteris, Inc. and its subsidiaries (collectively, the Company or Arteris) develop, license, and support the on-chip interconnect fabric technology used in System-on-Chip (SoC) designs for a variety of devices and in the development and distribution of Network-on-Chip (NoC) interconnect intellectual property (IP). The Company also provides software and services to enable efficient deployment of NoC IP, IP support & maintenance services, professional services and training and on-site support services. The Company is headquartered in Campbell, California and has offices in the United States, France, Japan, South Korea, Taiwan and China. In June 2024, the Company registered a subsidiary in Poland and is taking steps to establish an office there.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and the related notes included in the Company’s Form 10-K filed on February 20, 2024 (2023 Form 10-K) with the U.S. Securities and Exchange Commission (SEC). The December 31, 2023 condensed consolidated balance sheet was derived from the audited consolidated financial statements as of that date. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the unaudited condensed consolidated financial statements. The operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Arteris, Inc. and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates relate to, among others, revenue recognition, the useful lives of assets, assessment of recoverability of property, plant and equipment, fair value of investments, impairment of the equity method investment, fair values of goodwill and other intangible assets, including impairments, leases, allowances for doubtful accounts, deferred tax assets and related valuation allowance, stock-based compensation, potential reserves relating to litigation and tax matters, collectability of certain receivables, fair value and amortization of deferred income, as well as other accruals or reserves. Actual results could differ from those estimates and such differences may be material to the unaudited condensed consolidated financial statements. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. The Company’s cash equivalents include deposits in money market accounts which were unrestricted as to withdrawal or use and are stated at fair value. The Company’s cash equivalents occasionally include certificates of deposit. As of September 30, 2024, cash and cash equivalents consisted primarily of checking, savings, money market accounts, certificates of deposit and highly liquid investments with original maturities of three months or less. Interest earned on cash and cash equivalents is included in other income (expense), net in the unaudited consolidated statements of operations. As of both September 30, 2024 and December 31, 2023, the Company’s long-term restricted cash balance was $0.4 million, primarily related to a letter of credit for its facility lease agreement. Restricted cash, noncurrent is included in other assets on the unaudited condensed consolidated balance sheets. Concentrations of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash and cash equivalents, investments and accounts receivable. Cash is currently held in three financial institutions that the Company believes are creditworthy. Cash held at these financial institutions generally exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institution holding its cash, cash equivalents, and investments to the extent recorded in the balance sheet. The Company has not experienced any losses to date related to these concentrations. The Company’s accounts receivable are derived principally from revenue earned from customers located in Americas, Europe, Middle East and Asia Pacific regions. Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable was as follows: As of September 30, December 31, Customer A 24 % 15 % Customer B 15 % — % Customer C * 26 % * Customer accounted for less than 10% of total accounts receivable at period end. Revenue from the Company’s major customers representing 10% or more of total revenue was as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Customer A 15 % 13 % 15 % * * Customer accounted for less than 10% of total revenue during the period. Stock-based Compensation The Company measures equity classified stock-based awards, including stock options and RSUs granted to employees, directors, and non-employees based on the estimated fair values of the awards on the date of the grant. Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period which is generally the vesting period of such awards, as a component of operating expenses within the consolidated statements of operations. For awards that include performance conditions stock-based compensation expense is recognized on a graded vesting basis over the requisite service period. Compensation expense is not recognized until the performance condition becomes probable. The Company accounts for forfeitures related to these awards as they occur. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term, the volatility of the Company’s common stock, and an assumed risk-free interest rate. The fair value of RSUs granted is measured as the fair value per share of the Company’s common stock on the date of grant. The Company adopted the 2021 Employee Stock Purchase Plan (the 2021 ESPP) effective on October 26, 2021. The first offering under the 2021 ESPP began on May 22, 2024. E ligible employees are entitled to purchase common stock at the end of six-month offering periods, by means of limited payroll deductions, at a 15% discount from the fair market value of the common stock as of specific dates. The fair value of shares of common stock to be issued under the 2021 ESPP is estimated using the Black-Scholes option pricing model. Stock-based compensation expense for ESPP awards is recognized on a straight-line basis over the term of each ESPP offering period. Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies during the nine months ended September 30, 2024 from those disclosed in the annual consolidated financial statements for the year ended December 31, 2023. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which amends the guidance in ASC 740, Income Taxes. This ASU is intended to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024. The Company does not expect the adoption of ASU 2023-09 to have a significant impact on its consolidated financial statements and will adopt the standard effective January 1, 2025. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company plans to adopt ASU 2023-07 effective for the Annual Report on Form 10-K for the year ending December 31, 2024 and subsequent interim periods. The adoption of ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements.

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Disaggregated Revenue The following table shows revenue by product and services groups (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Licensing, support and maintenance $ 13,507 $ 12,084 $ 38,799 $ 36,926 Variable royalties 1,176 1,068 2,965 4,058 Other 30 122 471 178 Total $ 14,713 $ 13,274 $ 42,235 $ 41,162 Contract Balances The following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands): As of September 30, December 31, Accounts receivable, net $ 8,715 $ 12,003 Contract assets, current portion $ 187 $ 312 Contract assets, noncurrent portion $ 45 $ 566 Deferred revenue $ 65,502 $ 56,709 The Company recognized revenue of $12.3 million and $10.7 million for the three months ended September 30, 2024 and 2023, respectively, and $28.9 million and $23.7 million for the nine months ended September 30, 2024 and 2023, respectively, that was included in the deferred revenue balance at the beginning of the respective periods. Contract assets, current, and contract assets, noncurrent are included in prepaid expenses and other current assets and other assets, respectively, on the unaudited condensed consolidated balance sheets. As of September 30, 2024, non-cancelable contracted but unsatisfied or partially satisfied performance obligations that have not yet been recognized is $76.6 million which includes deferred revenue, amounts that will be invoiced and recognized as revenues in future periods and Flexible Spending Accounts (FSA) commitments, from customers where actual product selection and quantities of specific products are to be determined by customers at a future period. The Company expects to recognize $42.5 million of this balance over the next 12 months and the remainder thereafter. FSA commitments amounted to $3.2 million and $6.2 million as of September 30, 2024 and December 31, 2023, respectively. The Company has elected to exclude the potential future royalty receipts from these amounts. Costs of Obtaining a Contract with a Customer Incremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs are required to be capitalized under ASC 340-40, Other Assets and Deferred Costs—Contracts With Customers , and amortized over the license term. As direct sales commissions paid for term extensions are commensurate with the amounts paid for initial contracts, the deferred incremental costs for initial contracts and for term extensions are recognized over the respective contract terms. Total capitalized direct commission costs were as follows (in thousands): As of September 30, December 31, Short-term commission capitalized in prepaid expenses and other current assets $ 2,136 $ 2,408 Long-term commission capitalized in other assets 1,450 1,353 Total $ 3,586 $ 3,761 Amortization of capitalized sales commissions was $0.8 million and $0.9 million for the three months ended September 30, 2024 and 2023, respectively, and $2.6 million and $2.8 million for the nine months ended September 30, 2024 and 2023, respectively, and are included in sales and marketing expense in the unaudited condensed consolidated statements of operations.

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Numerator: Net loss $ (7,687) $ (8,153) $ (25,434) $ (26,328) Denominator: Weighted-average shares outstanding, basic and diluted 39,295,743 36,010,106 38,496,838 35,291,207 Net loss per share, basic and diluted $ (0.20) $ (0.23) $ (0.66) $ (0.75) Since the Company was in a loss position for all periods presented, the diluted earnings per share is equal to the basic earnings per share as the effect of potentially dilutive securities would have been antidilutive. The following table summarizes the potentially dilutive securities that were excluded from the calculation of diluted earnings per share because they would be anti-dilutive: As of September 30, 2024 September 30, 2023 Stock options 2,259,303 2,997,359 Restricted stock units 5,647,231 6,234,174 Restricted common shares issued for business combination 234,859 331,574 Shares committed under the 2021 ESPP 81,545 — Total 8,222,938 9,563,107

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	INVESTMENTS The following tables summarize the fair value and amortized cost of the Company’s cash equivalents and available-for-sale securities by major security type (in thousands): As of September 30, 2024 Amortized Cost Unrealized Gains Aggregate Fair Value Assets: U.S. government agency securities $ 17,184 $ 64 $ 17,248 U.S. treasury securities 11,159 10 11,169 Corporate bonds 8,257 18 8,275 Money market funds 7,402 — 7,402 Certificate of deposit 5,000 — 5,000 Commercial paper 1,486 — 1,486 Total financial assets $ 50,488 $ 92 $ 50,580 As of December 31, 2023 Amortized Cost Unrealized Gains (Losses) Aggregate Fair Value Assets: U.S. government agency securities $ 19,461 $ 29 $ 19,490 U.S. treasury securities 10,630 3 10,633 Money market funds 8,026 — 8,026 Corporate bonds 5,649 9 5,658 Certificate of deposit 5,000 — 5,000 Commercial paper 990 (1) 989 Total financial assets $ 49,756 $ 40 $ 49,796 The maturity dates of the Company’s investments are as follows (in thousands): September 30, 2024 Less than one year $ 44,741 1-2 years 5,839 Total $ 50,580

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Assets Measured and Recorded at Fair Value on a Non-Recurring Basis Equity method investments, and certain non-financial assets, such as intangible assets are remeasured at fair value only if an impairment or observable price adjustment is recognized in the current period. Financial Instruments Not Recorded at Fair Value on a Recurring Basis Financial instruments not recorded at fair value on a recurring basis include vendor financing arrangements. The carrying value of the vendor financing agreements was $1.8 million and $3.4 million as of September 30, 2024 and December 31, 2023, respectively. The Company’s vendor financing arrangements are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon the Company’s incremental borrowing rate. The estimated fair values of these financial instruments approximate their carrying values. Financial Instruments Recorded at Fair Value on a Recurring Basis The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): As of September 30, 2024 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Certificate of deposit $ — $ 5,000 $ — $ 5,000 Money market funds 7,402 — — 7,402 U.S. treasury securities — 1,498 — 1,498 Total cash equivalents 7,402 6,498 — 13,900 Short-term investments: Commercial paper — 1,486 — 1,486 Corporate bonds — 8,275 — 8,275 U.S. government agency securities — 11,409 — 11,409 U.S. treasury securities — 9,671 — 9,671 Total short-term investments — 30,841 — 30,841 Long-term investments: U.S. government agency securities — 5,839 — 5,839 Total long-term investments — 5,839 — 5,839 Total financial assets $ 7,402 $ 43,178 $ — $ 50,580 As of December 31, 2023 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market funds $ 8,026 $ — $ — $ 8,026 U.S. treasury securities — 2,491 — 2,491 Total cash equivalents 8,026 2,491 — 10,517 Short-term investments: Certificate of deposit — 5,000 — 5,000 Commercial paper — 989 — 989 Corporate bonds — 3,696 — 3,696 U.S. government agency securities — 9,650 — 9,650 U.S. treasury securities — 8,142 — 8,142 Total short-term investments — 27,477 — 27,477 Long-term investments: Corporate bonds — 1,962 — 1,962 U.S. government agency securities — 9,840 — 9,840 Total long-term investments — 11,802 — 11,802 Total financial assets $ 8,026 $ 41,770 $ — $ 49,796 Money market funds are highly liquid investments and are actively traded. The fair value is based on quoted prices for identical assets in active markets and therefore classified as Level 1 of the fair value hierarchy. The Company’s other investments are considered Level 2 financial instruments as their fair values are determined using inputs that are directly or indirectly observable in active or less active markets. There were no transfers between levels during the periods presented.

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS AND GOODWILL	INTANGIBLE ASSETS AND GOODWILL Intangible assets, net Intangible assets, net consisted of the following as of September 30, 2024 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,590 $ (1,676) $ 1,914 Customer relationships 1,830 (687) 1,143 Trade name and other 200 (12) 188 Total intangibles $ 5,620 $ (2,375) $ 3,245 Intangible assets, net consisted of the following as of December 31, 2023 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,090 $ (1,247) $ 1,843 Customer relationships 1,830 (515) 1,315 IPR&D 500 — 500 Trade name and other 200 — 200 Total intangibles $ 5,620 $ (1,762) $ 3,858 In July 2024, the Company completed an IPR&D project that resulted in the reclassification of $0.5 million from IPR&D to developed technology. Amortization expense of intangible assets was $0.2 million for both the three months ended September 30, 2024 and 2023, and $0.6 million f or both the nine months ended September 30, 2024 and 2023. The expected future amortization expense of these intangible assets as of September 30, 2024 is as follows (in thousands) : Fiscal year ending December 31, Amount Remainder of 2024 $ 221 2025 856 2026 544 2027 527 2028 516 Thereafter 431 Total future amortization expense $ 3,095 Goodwill As of both September 30, 2024 and December 31, 2023, goodwill was $4.2 million. No goodwill impairments were recorded during the three and nine months ended September 30, 2024 and 2023.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
LEASES	LEASES The Company leases its offices at various locations under noncancelable operating lease agreements expiring at various dates through 2032. Under the terms of these agreements, the Company also bears the costs for certain insurance, property tax, and maintenance. The terms of certain lease agreements provide for increasing rental payments at fixed intervals. Total operating lease related costs were as follows (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Operating lease cost $ 319 $ 288 $ 965 $ 841 Short-term lease cost 25 32 38 147 Total lease cost $ 344 $ 320 $ 1,003 $ 988 The weighted-average remaining term of the Company’s operating leases was 4.1 years and 4.8 years as of September 30, 2024 and December 31, 2023, respectively, and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 10.0% as of both September 30, 2024 and December 31, 2023. Cash payments made related to operating lease liabilities were $0.3 million for both the three months ended September 30, 2024 and 2023, and $0.8 million for both the nine months ended September 30, 2024 and 2023 . Maturities of operating lease liabilities as of September 30, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 333 2025 1,296 2026 1,254 2027 1,245 2028 839 Thereafter 260 Total undiscounted cash flows 5,227 Less: imputed interest (947) Present value of lease liabilities $ 4,280 Operating lease liabilities, current $ 948 Operating lease liabilities, noncurrent 3,332 Total lease liabilities $ 4,280

BORROWINGS

BORROWINGS	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
BORROWINGS	BORROWINGS Vendor financing arrangements —The Company has various vendor financing arrangements with extended pa yment terms on the purchase of software licenses and equipment. In order to determine the present value of the commitments, the Company used an imputed interest rate of 10.0% , which is an estimate based on the Company’s collateralized borrowing rate. Expected cash flows related to vendor financing arrangements as of September 30, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 355 2025 1,089 2026 545 Total undiscounted cash flows 1,989 Less: Imputed interest (148) Present value of vendor financing arrangements $ 1,841 Vendor financing arrangements, current $ 1,172 Vendor financing arrangements, noncurrent 669 $ 1,841 Interest expense from vendor financing arrangements was $0.1 million for both the three months ended September 30, 2024 and 2023, and $0.2 million and $0.1 million for the nine months ended September 30, 2024 and 2023, respectively .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Letter of Credit —In conjunction with the execution of the operating lease for the Company’s new headquarter facility, a letter of credit in the amount of $0.4 million was issued and outstanding as of both September 30, 2024 and December 31, 2023 . No draws have been made under such letter of credit. Indemnifications —The Company often enters into limited indemnification provisions in license agreements in the ordinary course of the Company’s licensing business. Pursuant to these provisions, which are often inserted into license agreements in the semiconductor IP and software licensing industries, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties up to a capped amount for losses suffered or incurred by such indemnified parties due to third-party claims if such claims are determined to be caused by the Company. The term of these indemnification provisions is generally either for a term of years or perpetual, in each case beginning on the execution date of the agreement. The Company has also agreed to indemnify under indemnity agreements with its directors and officers, to the extent legally permissible, against liabilities incurred in connection with any action in which such individual may be involved by reason of such individual being or having been a director or officer, other than certain liabilities arising from willful misconduct of the individual. The Company has incurred no actual payment obligations from these above-noted indemnification provisions and director and officer indemnity agreements for the three and nine months ended September 30, 2024 and 2023 and the unaudited condensed consolidated financial statements do not include liabilities for any potential indemnity-related obligations as of September 30, 2024 and December 31, 2023 . Legal —The Company has been and will continue to be subject to legal proceedings and claims. In the normal course of business, the Company may receive inquiries or become involved in legal disputes regarding such litigation matters. The resolution of these matters often develops over time and expectations can change as a result of new findings, rulings, appeals or settlement arrangements. These matters are subject to inherent uncertainties and management’s view of these matters may change in the future. Pursuant to ASC 450, Contingencies, the Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred, and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Significant judgement is required in both the determination of probability and determination as to whether a loss is reasonably estimable. Intellectual property claims are inherently unpredictable and may have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Due to the inherent uncertainties and complex technical issues arising from this or any intellectual property litigation, the Company cannot predict or guarantee any result of, and cannot reasonably estimate liability if any, or range of loss that could result from such intellectual property litigation. Future revisions to such estimates could materially impact the Company’s results. In December 2022, the Company received notice of a complaint filed against the Company and another defendant in the semiconductor industry, by Network System Technologies, LLC (NST) in the United States District Court for the Western District of Texas. Additional complaints were filed in the Eastern District of Texas against certain companies, including some customers of the Company, asserting among other things patent infringement seeking damages and injunctive relief. On September 4, 2024, the court in the Western District of Texas dismissed all claims against the Company without prejudice. The court will maintain jurisdiction solely for the purpose of enforcing a discovery order. The Company has not received any new claims involving the Company nor any new customer indemnity claims in connection with the NST litigation. The Company will continue to monitor this matter. The Company has no material contractual noncancelable commitments as of both September 30, 2024 and December 31, 2023.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based compensation expense is recorded on a departmental basis, based on the classification of the award holder. The following table presents the amount of stock-based compensation related to stock-based awards to employees on the Company’s unaudited condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Cost of revenue $ 221 $ 181 $ 596 $ 386 Research and development 2,154 1,742 5,550 5,656 Sales and marketing 850 666 2,230 2,088 General and administrative 1,165 1,125 3,431 2,851 Total stock-based compensation $ 4,390 $ 3,714 $ 11,807 $ 10,981

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s effective tax rate was (5.2)% and (1.8)% for the nine months ended September 30, 2024 and 2023, respectively. The Company’s income tax provision was $1.3 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively. The change in forecasted foreign withholding tax, changes in the geographic mix of worldwide earnings which are taxed at different rates, and the impact of losses in jurisdictions with full valuation allowances, has resulted in an increase in the income tax provision for the period ended September 30, 2024 compared to the period ended September 30, 2023. The Company’s management continuously evaluates the need for a valuation allowance and, as of September 30, 2024, concluded that a full valuation allowance on its federal, state, and certain foreign jurisdictions deferred tax assets was still appropriate.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company defines related parties as directors, executive officers, nominees for director, stockholders that have significant influence over the Company, or are a greater than 10% beneficial owner of the Company’s capital and their affiliates or immediate family members. In November 2020, the Company entered into a lease agreement with Isabelle Geday, a member of the Board of Directors. The lease payments were less than $0.1 million for both the three months ended September 30, 2024 and 2023, and $0.1 million for both the nine months ended September 30, 2024 and 2023. In addition, the Company signed a consulting agreement with Ms. Geday on December 1 , 2021, which was subsequently assigned to Magillem Design Services S.A., effective January 10, 2022. Prior to signing the consulting agreement, Ms. Geday was paid as an executive employee of the Company from December 1, 2020 through November 30, 2021. As a consultant, Ms. Geday will provide services for an initial three-year term and is eligible to receive $26,445 per month for the first 12 months of the consulting term and $19,445 per month for the remaining 24 months of the consulting term. For both the three and nine months ended September 30, 2024 and 2023 , the Company paid Ms. Geday $0.1 million and $0.2 million for consulting services, respectively. Lastly, the 455,000 stock options and 62,200 RSUs granted in connection with Ms. Geday’s prior employment continue to vest. The Company recognized stock-based compensation expense of less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2024 and 2023 , respectively, for the stock options and RSUs granted in connection with Ms. Geday’s prior employment.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (7,687)	$ (8,153)	$ (25,434)	$ (26,328)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and the related notes included in the Company’s Form 10-K filed on February 20, 2024 (2023 Form 10-K) with the U.S. Securities and Exchange Commission (SEC). The December 31, 2023 condensed consolidated balance sheet was derived from the audited consolidated financial statements as of that date. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the unaudited condensed consolidated financial statements.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Arteris, Inc. and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated.
Use of Estimates	Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates relate to, among others, revenue recognition, the useful lives of assets, assessment of recoverability of property, plant and equipment, fair value of investments, impairment of the equity method investment, fair values of goodwill and other intangible assets, including impairments, leases, allowances for doubtful accounts, deferred tax assets and related valuation allowance, stock-based compensation, potential reserves relating to litigation and tax matters, collectability of certain receivables, fair value and amortization of deferred income, as well as other accruals or reserves. Actual results could differ from those estimates and such differences may be material to the unaudited condensed consolidated financial statements.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. The Company’s cash equivalents include deposits in money market accounts which were unrestricted as to withdrawal or use and are stated at fair value. The Company’s cash equivalents occasionally include certificates of deposit. As of September 30, 2024, cash and cash equivalents consisted primarily of checking, savings, money market accounts, certificates of deposit and highly liquid investments with original maturities of three months or less. Interest earned on cash and cash equivalents is included in other income (expense), net in the unaudited consolidated statements of operations. As of both September 30, 2024 and December 31, 2023, the Company’s long-term restricted cash balance was $0.4 million, primarily related to a letter of credit for its facility lease agreement. Restricted cash, noncurrent is included in other assets on the unaudited condensed consolidated balance sheets.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash and cash equivalents, investments and accounts receivable. Cash is currently held in three financial institutions that the Company believes are creditworthy. Cash held at these financial institutions generally exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institution holding its cash, cash equivalents, and investments to the extent recorded in the balance sheet. The Company has not experienced any losses to date related to these concentrations. The Company’s accounts receivable are derived principally from revenue earned from customers located in Americas, Europe, Middle East and Asia Pacific regions.
Stock-based Compensation	Stock-based Compensation The Company measures equity classified stock-based awards, including stock options and RSUs granted to employees, directors, and non-employees based on the estimated fair values of the awards on the date of the grant. Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period which is generally the vesting period of such awards, as a component of operating expenses within the consolidated statements of operations. For awards that include performance conditions stock-based compensation expense is recognized on a graded vesting basis over the requisite service period. Compensation expense is not recognized until the performance condition becomes probable. The Company accounts for forfeitures related to these awards as they occur. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term, the volatility of the Company’s common stock, and an assumed risk-free interest rate. The fair value of RSUs granted is measured as the fair value per share of the Company’s common stock on the date of grant. The Company adopted the 2021 Employee Stock Purchase Plan (the 2021 ESPP) effective on October 26, 2021. The first offering under the 2021 ESPP began on May 22, 2024. E ligible employees are entitled to purchase common stock at the end of six-month offering periods, by means of limited payroll deductions, at a 15% discount from the fair market value of the common stock as of specific dates. The fair value of shares of common stock to be issued under the 2021 ESPP is estimated using the Black-Scholes option pricing model. Stock-based compensation expense for ESPP awards is recognized on a straight-line basis over the term of each ESPP offering period.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which amends the guidance in ASC 740, Income Taxes. This ASU is intended to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024. The Company does not expect the adoption of ASU 2023-09 to have a significant impact on its consolidated financial statements and will adopt the standard effective January 1, 2025. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company plans to adopt ASU 2023-07 effective for the Annual Report on Form 10-K for the year ending December 31, 2024 and subsequent interim periods. The adoption of ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements.
Fair Value Measurements	Assets Measured and Recorded at Fair Value on a Non-Recurring Basis Equity method investments, and certain non-financial assets, such as intangible assets are remeasured at fair value only if an impairment or observable price adjustment is recognized in the current period. Financial Instruments Not Recorded at Fair Value on a Recurring Basis Financial instruments not recorded at fair value on a recurring basis include vendor financing arrangements. The carrying value of the vendor financing agreements was $1.8 million and $3.4 million as of September 30, 2024 and December 31, 2023, respectively. The Company’s vendor financing arrangements are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon the Company’s incremental borrowing rate. The estimated fair values of these financial instruments approximate their carrying values. Money market funds are highly liquid investments and are actively traded. The fair value is based on quoted prices for identical assets in active markets and therefore classified as Level 1 of the fair value hierarchy. The Company’s other investments are considered Level 2 financial instruments as their fair values are determined using inputs that are directly or indirectly observable in active or less active markets. There were no transfers between levels during the periods presented.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedules of Concentration of Risk	Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable was as follows: As of September 30, December 31, Customer A 24 % 15 % Customer B 15 % — % Customer C * 26 % * Customer accounted for less than 10% of total accounts receivable at period end. Revenue from the Company’s major customers representing 10% or more of total revenue was as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Customer A 15 % 13 % 15 % * * Customer accounted for less than 10% of total revenue during the period.

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table shows revenue by product and services groups (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Licensing, support and maintenance $ 13,507 $ 12,084 $ 38,799 $ 36,926 Variable royalties 1,176 1,068 2,965 4,058 Other 30 122 471 178 Total $ 14,713 $ 13,274 $ 42,235 $ 41,162
Contract Balances on Condensed Consolidated Balance Sheet	The following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands): As of September 30, December 31, Accounts receivable, net $ 8,715 $ 12,003 Contract assets, current portion $ 187 $ 312 Contract assets, noncurrent portion $ 45 $ 566 Deferred revenue $ 65,502 $ 56,709
Capitalized Direct Commission Costs	Total capitalized direct commission costs were as follows (in thousands): As of September 30, December 31, Short-term commission capitalized in prepaid expenses and other current assets $ 2,136 $ 2,408 Long-term commission capitalized in other assets 1,450 1,353 Total $ 3,586 $ 3,761

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Net Loss Per Share	The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Numerator: Net loss $ (7,687) $ (8,153) $ (25,434) $ (26,328) Denominator: Weighted-average shares outstanding, basic and diluted 39,295,743 36,010,106 38,496,838 35,291,207 Net loss per share, basic and diluted $ (0.20) $ (0.23) $ (0.66) $ (0.75)
Schedule of Potentially Dilutive Securities Excluded from the Calculation of Diluted Earnings Per Share	The following table summarizes the potentially dilutive securities that were excluded from the calculation of diluted earnings per share because they would be anti-dilutive: As of September 30, 2024 September 30, 2023 Stock options 2,259,303 2,997,359 Restricted stock units 5,647,231 6,234,174 Restricted common shares issued for business combination 234,859 331,574 Shares committed under the 2021 ESPP 81,545 — Total 8,222,938 9,563,107

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale	The following tables summarize the fair value and amortized cost of the Company’s cash equivalents and available-for-sale securities by major security type (in thousands): As of September 30, 2024 Amortized Cost Unrealized Gains Aggregate Fair Value Assets: U.S. government agency securities $ 17,184 $ 64 $ 17,248 U.S. treasury securities 11,159 10 11,169 Corporate bonds 8,257 18 8,275 Money market funds 7,402 — 7,402 Certificate of deposit 5,000 — 5,000 Commercial paper 1,486 — 1,486 Total financial assets $ 50,488 $ 92 $ 50,580 As of December 31, 2023 Amortized Cost Unrealized Gains (Losses) Aggregate Fair Value Assets: U.S. government agency securities $ 19,461 $ 29 $ 19,490 U.S. treasury securities 10,630 3 10,633 Money market funds 8,026 — 8,026 Corporate bonds 5,649 9 5,658 Certificate of deposit 5,000 — 5,000 Commercial paper 990 (1) 989 Total financial assets $ 49,756 $ 40 $ 49,796
Debt Securities, Held-to-maturity, Nonaccrual	The maturity dates of the Company’s investments are as follows (in thousands): September 30, 2024 Less than one year $ 44,741 1-2 years 5,839 Total $ 50,580

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): As of September 30, 2024 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Certificate of deposit $ — $ 5,000 $ — $ 5,000 Money market funds 7,402 — — 7,402 U.S. treasury securities — 1,498 — 1,498 Total cash equivalents 7,402 6,498 — 13,900 Short-term investments: Commercial paper — 1,486 — 1,486 Corporate bonds — 8,275 — 8,275 U.S. government agency securities — 11,409 — 11,409 U.S. treasury securities — 9,671 — 9,671 Total short-term investments — 30,841 — 30,841 Long-term investments: U.S. government agency securities — 5,839 — 5,839 Total long-term investments — 5,839 — 5,839 Total financial assets $ 7,402 $ 43,178 $ — $ 50,580 As of December 31, 2023 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market funds $ 8,026 $ — $ — $ 8,026 U.S. treasury securities — 2,491 — 2,491 Total cash equivalents 8,026 2,491 — 10,517 Short-term investments: Certificate of deposit — 5,000 — 5,000 Commercial paper — 989 — 989 Corporate bonds — 3,696 — 3,696 U.S. government agency securities — 9,650 — 9,650 U.S. treasury securities — 8,142 — 8,142 Total short-term investments — 27,477 — 27,477 Long-term investments: Corporate bonds — 1,962 — 1,962 U.S. government agency securities — 9,840 — 9,840 Total long-term investments — 11,802 — 11,802 Total financial assets $ 8,026 $ 41,770 $ — $ 49,796

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets, net consisted of the following as of September 30, 2024 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,590 $ (1,676) $ 1,914 Customer relationships 1,830 (687) 1,143 Trade name and other 200 (12) 188 Total intangibles $ 5,620 $ (2,375) $ 3,245 Intangible assets, net consisted of the following as of December 31, 2023 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,090 $ (1,247) $ 1,843 Customer relationships 1,830 (515) 1,315 IPR&D 500 — 500 Trade name and other 200 — 200 Total intangibles $ 5,620 $ (1,762) $ 3,858
Schedule of Future Amortization Expense	The expected future amortization expense of these intangible assets as of September 30, 2024 is as follows (in thousands) : Fiscal year ending December 31, Amount Remainder of 2024 $ 221 2025 856 2026 544 2027 527 2028 516 Thereafter 431 Total future amortization expense $ 3,095

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Operating Lease Costs	Total operating lease related costs were as follows (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Operating lease cost $ 319 $ 288 $ 965 $ 841 Short-term lease cost 25 32 38 147 Total lease cost $ 344 $ 320 $ 1,003 $ 988
Maturities of Operating Lease Liabilities	Maturities of operating lease liabilities as of September 30, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 333 2025 1,296 2026 1,254 2027 1,245 2028 839 Thereafter 260 Total undiscounted cash flows 5,227 Less: imputed interest (947) Present value of lease liabilities $ 4,280 Operating lease liabilities, current $ 948 Operating lease liabilities, noncurrent 3,332 Total lease liabilities $ 4,280

BORROWINGS (Tables)

BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Vendor Financing Arrangements	Expected cash flows related to vendor financing arrangements as of September 30, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 355 2025 1,089 2026 545 Total undiscounted cash flows 1,989 Less: Imputed interest (148) Present value of vendor financing arrangements $ 1,841 Vendor financing arrangements, current $ 1,172 Vendor financing arrangements, noncurrent 669 $ 1,841

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation Related to Stock-Based Awards to Employees	The following table presents the amount of stock-based compensation related to stock-based awards to employees on the Company’s unaudited condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Cost of revenue $ 221 $ 181 $ 596 $ 386 Research and development 2,154 1,742 5,550 5,656 Sales and marketing 850 666 2,230 2,088 General and administrative 1,165 1,125 3,431 2,851 Total stock-based compensation $ 4,390 $ 3,714 $ 11,807 $ 10,981

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	May 22, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Accounting Policies [Abstract]
Restricted cash		$ 388	$ 400	$ 388
Share-based compensation arrangement by share-based payment award, discount from market price, purchase date	15%

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable Concentration Risk (Details) - Accounts Receivable - Customer Concentration Risk	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	24%	15%
Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	15%	0%
Customer C
Concentration Risk [Line Items]
Concentration risk, percentage		26%

BASIS OF PRESENTATION AND SUM_6

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Concentration Risk (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024
Customer A | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	15%	13%	15%

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 14,713	$ 13,274	$ 42,235	$ 41,162
Licensing, support and maintenance
Disaggregation of Revenue [Line Items]
Total revenue	13,507	12,084	38,799	36,926
Variable royalties
Disaggregation of Revenue [Line Items]
Total revenue	1,176	1,068	2,965	4,058
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 30	$ 122	$ 471	$ 178

REVENUE - Contract Balances on

REVENUE - Contract Balances on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 8,715	$ 12,003
Contract assets, current portion	187	312
Contract assets, noncurrent portion	45	566
Deferred revenue	$ 65,502	$ 56,709

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Deferred revenue, revenue recognized	$ 12.3	$ 10.7	$ 28.9	$ 23.7
Unsatisfied performance obligations	76.6		76.6
Revenue, remaining performance obligation, flexible spending account commitment	3.2		3.2		$ 6.2
Amortization of capitalized sales commissions	0.8	$ 0.9	2.6	$ 2.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Disaggregation of Revenue [Line Items]
Unsatisfied performance obligations, excluding flexible spending account commitment	$ 42.5		$ 42.5
Remaining performance obligation, expected timing of satisfaction	12 months		12 months

REVENUE - Capitalized Direct Co

REVENUE - Capitalized Direct Commission Costs (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Short-term commission capitalized in prepaid expenses and other current assets	$ 2,136	$ 2,408
Long-term commission capitalized in other assets	1,450	1,353
Total	$ 3,586	$ 3,761

NET LOSS PER SHARE - Schedule o

NET LOSS PER SHARE - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net loss	$ (7,687)	$ (8,153)	$ (25,434)	$ (26,328)
Denominator:
Weighted-average shares outstanding - basic (in shares)	39,295,743	36,010,106	38,496,838	35,291,207
Weighted-average shares outstanding - diluted (in shares)	39,295,743	36,010,106	38,496,838	35,291,207
Net loss per share, basic (in dollars per share)	$ (0.20)	$ (0.23)	$ (0.66)	$ (0.75)
Net loss per share, diluted (in dollars per share)	$ (0.20)	$ (0.23)	$ (0.66)	$ (0.75)

NET LOSS PER SHARE - Schedule_2

NET LOSS PER SHARE - Schedule of Potentially Dilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	8,222,938	9,563,107
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,259,303	2,997,359
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,647,231	6,234,174
Restricted common shares issued for business combination
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	234,859	331,574
Shares committed under the 2021 ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	81,545	0

INVESTMENTS - Debt Securities,

INVESTMENTS - Debt Securities, Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 50,488	$ 49,756
Unrealized Gains	92	40
Aggregate Fair Value	50,580	49,796
U.S. government agency securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	17,184	19,461
Unrealized Gains	64	29
Aggregate Fair Value	17,248	19,490
U.S. treasury securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	11,159	10,630
Unrealized Gains	10	3
Aggregate Fair Value	11,169	10,633
Money market funds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	7,402	8,026
Unrealized Gains	0	0
Aggregate Fair Value	7,402	8,026
Corporate bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	8,257	5,649
Unrealized Gains	18	9
Aggregate Fair Value	8,275	5,658
Certificate of deposit
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,000	5,000
Unrealized Gains	0	0
Aggregate Fair Value	5,000	5,000
Commercial paper
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,486	990
Unrealized Gains	0	(1)
Aggregate Fair Value	$ 1,486	$ 989

INVESTMENTS - Debt Securities_2

INVESTMENTS - Debt Securities, Held-to-maturity, Nonaccrual (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Investments, Debt and Equity Securities [Abstract]
Less than one year	$ 44,741
1-2 years	5,839
Total	$ 50,580

INVESTMENTS - Narrative (Detail

INVESTMENTS - Narrative (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Continue net unrealized loss position	$ 800,000	$ 3,700,000
Allowance for credit loss	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Reported Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Carrying value of term loan and vendor financing agreements	$ 1.8	$ 3.4

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	$ 13,900	$ 10,517
Total short-term investments	30,841	27,477
Total long-term investments	5,839	11,802
Total financial assets	50,580	49,796
Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	7,402	8,026
Total short-term investments	0	0
Total long-term investments	0	0
Total financial assets	7,402	8,026
Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	6,498	2,491
Total short-term investments	30,841	27,477
Total long-term investments	5,839	11,802
Total financial assets	43,178	41,770
Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	0	0
Total short-term investments	0	0
Total long-term investments	0	0
Total financial assets	0	0
Money market funds
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	7,402	8,026
Money market funds | Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	7,402	8,026
Money market funds | Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	0	0
Money market funds | Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	0	0
U.S. treasury securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	1,498	2,491
Total short-term investments	9,671	8,142
U.S. treasury securities | Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	0	0
Total short-term investments	0	0
U.S. treasury securities | Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	1,498	2,491
Total short-term investments	9,671	8,142
U.S. treasury securities | Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	0	0
Total short-term investments	0	0
Certificate of deposit
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	5,000
Total short-term investments		5,000
Certificate of deposit | Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	0
Total short-term investments		0
Certificate of deposit | Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	5,000
Total short-term investments		5,000
Certificate of deposit | Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	0
Total short-term investments		0
Commercial paper
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	1,486	989
Commercial paper | Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	0	0
Commercial paper | Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	1,486	989
Commercial paper | Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	0	0
Corporate bonds
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	8,275	3,696
Total long-term investments		1,962
Corporate bonds | Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	0	0
Total long-term investments		0
Corporate bonds | Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	8,275	3,696
Total long-term investments		1,962
Corporate bonds | Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	0	0
Total long-term investments		0
U.S. government agency securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	11,409	9,650
Total long-term investments	5,839	9,840
U.S. government agency securities | Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	0	0
Total long-term investments	0	0
U.S. government agency securities | Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	11,409	9,650
Total long-term investments	5,839	9,840
U.S. government agency securities | Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total short-term investments	0	0
Total long-term investments	$ 0	$ 0

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 5,620	$ 5,620
Finite-lived intangible assets, accumulated amortization	(2,375)	(1,762)
Total future amortization expense	3,095
Intangible assets, net	3,245	3,858
In Process Research and Development
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, gross		500
Trade name and other
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	200
Indefinite-lived intangible assets, gross		200
Finite-lived intangible assets, accumulated amortization	(12)
Total future amortization expense	188
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	3,590	3,090
Finite-lived intangible assets, accumulated amortization	(1,676)	(1,247)
Total future amortization expense	1,914	1,843
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	1,830	1,830
Finite-lived intangible assets, accumulated amortization	(687)	(515)
Total future amortization expense	$ 1,143	$ 1,315

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jul. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Reclassification of indefinite-lived intangible assets					$ 500,000
Amortization expense	$ 200,000	$ 200,000	$ 600,000	$ 600,000
Goodwill	4,178,000		4,178,000			$ 4,178,000
Goodwill impairments	$ 0	$ 0	$ 0	$ 0

INTANGIBLE ASSETS AND GOODWIL_4

INTANGIBLE ASSETS AND GOODWILL - Schedule of Future Amortization Expense (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2024	$ 221
2025	856
2026	544
2027	527
2028	516
Thereafter	431
Total future amortization expense	$ 3,095

LEASES - Operating Lease Costs

LEASES - Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 319	$ 288	$ 965	$ 841
Short-term lease cost	25	32	38	147
Total lease cost	$ 344	$ 320	$ 1,003	$ 988

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Leases [Abstract]
Weighted average remaining lease term, operating lease	4 years 1 month 6 days		4 years 1 month 6 days		4 years 9 months 18 days
Weighted average discount rate, operating lease	10%		10%		10%
Cash payments	$ 0.3	$ 0.3	$ 0.8	$ 0.8

LEASES - Maturities of Operatin

LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Remainder of 2024	$ 333
2025	1,296
2026	1,254
2027	1,245
2028	839
Thereafter	260
Total undiscounted cash flows	5,227
Less: imputed interest	(947)
Present value of lease liabilities	4,280
Operating lease liabilities, current	948	$ 781
Operating lease liabilities, noncurrent	$ 3,332	$ 3,610

BORROWINGS - Narrative (Details

BORROWINGS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Interest expense	$ 0.1	$ 0.1	$ 0.2	$ 0.1
Vendor Financing Arrangements
Debt Instrument [Line Items]
Interest rate, effective percentage	10%		10%

BORROWINGS - Schedule of Vendor

BORROWINGS - Schedule of Vendor Financing Arrangements (Details) - Vendor Financing Arrangements $ in Thousands	Sep. 30, 2024 USD ($)
Debt Instrument [Line Items]
Remainder of 2024	$ 355
2025	1,089
2026	545
Total undiscounted cash flows	1,989
Less: Imputed interest	(148)
Present value of vendor financing arrangements	1,841
Vendor financing arrangements, current	1,172
Vendor financing arrangements, noncurrent	$ 669

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	$ 0.4	$ 0.4
Letter of Credit
Line of Credit Facility [Line Items]
Proceeds from lines of credit	$ 0

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock-Based Compensation Related to Stock-Based Awards to Employees (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 4,390	$ 3,714	$ 11,807	$ 10,981
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	221	181	596	386
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,154	1,742	5,550	5,656
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	850	666	2,230	2,088
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 1,165	$ 1,125	$ 3,431	$ 2,851

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate			(5.20%)	(1.80%)
Income tax expense (benefit)	$ (92,000)	$ (398,000)	$ 1,253,000	$ 453,000
Unrecognized tax benefits	3,500,000	2,600,000	3,500,000	2,600,000
Income tax penalties and interest accrued related to unrecognized tax benefits	$ 0	$ 0	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
Lease payment due to related party	$ 300,000	$ 300,000	$ 800,000	$ 800,000
Total stock-based compensation	4,390,000	3,714,000	11,807,000	10,981,000
Director
Related Party Transaction [Line Items]
Lease payment due to related party	100,000	100,000	$ 100,000	100,000
Director | Isabelle Geday | Consulting Agreement
Related Party Transaction [Line Items]
Related party transaction, agreement term			3 years
Professional fees	100,000	200,000	$ 100,000	200,000
Total stock-based compensation	100,000	$ 100,000	$ 100,000	$ 100,000
Director | Isabelle Geday | Consulting Agreement | Related Party Transaction, Tranche One
Related Party Transaction [Line Items]
Related party transaction, agreement term			12 months
Due to related party, monthly amount	26,445		$ 26,445
Director | Isabelle Geday | Consulting Agreement | Related Party Transaction, Tranche Two
Related Party Transaction [Line Items]
Related party transaction, agreement term			24 months
Due to related party, monthly amount	$ 19,445		$ 19,445
Director | Isabelle Geday | Consulting Agreement | Convertible Preferred Stock
Related Party Transaction [Line Items]
Options outstanding (in shares)	455,000		455,000
Director | Isabelle Geday | Consulting Agreement | Restricted stock units
Related Party Transaction [Line Items]
Granted unvested options (in shares)	62,200		62,200